Mallya used F1, T20 team and other outfits to divert Rs3,547 cr: ED
19 June 2018
The Enforcement Directorate has accused Vijay Mallya and the now defunct Kingfisher Airlines of "diverting" over Rs3,547 crore of loan to a UK-based F1 motorsport firm, a T20 IPL team and others.
The ED submitted its second charge sheet against beleaguered liquor baron Vijay Mallya's UB Holdings and the now-defunct Kingfisher Airlines, along with others in a special court, accusing them of laundering Rs9,990 crore fraudulently availed as loan from State Bank of India-led consortium of 17 banks.
The ED also said in its supplementary prosecution complaint that Mallya did not fully disclose his assets during his personal guarantee agreement with a consortium of 17 lenders, according to The Indian Express.
According to ED, the Rs3,432.40 crore was diverted by “over invoicing” of lease rentals of aircraft between April 2008 and March 2012. Another Rs45.42 crore was diverted “for making payment towards the rental lease” of a corporate jet, which was used “exclusively” by Mallya, while Rs50.90 crore was diverted from Kingfisher Airlines to Mallya-controlled Force Indian Formula One Team, Rs15.90 crore from the airlines to IPL team Royal Challengers Bangalore; and Rs2.80 crore to ICICI Bank as repayment of an earlier loan to Kingfisher Airlines.
In its charge sheet, the ED estimated the total assets of beleaguered businessman Vijay Mallya at Rs3,164.65 crore as of 2010, while Mallya disclosed his total assets as Rs1,395 crore.
The ED has claimed that Mallya “has amassed huge properties outside India, especially in the UK, USA, France and other countries” and “has got interest in various companies which are created / incorporated outside India”. “These facts of overseas properties and companies have not been mentioned in the asset / liability statement submitted, and have been deliberately hidden from the banks,” it said.
The ED charge sheet puts the total dues, including interest, that Kingfisher Airlines owed the consortium of banks at Rs9,990.07 crore as of 15 May this year.
The ED charge sheet also said the Mallya purchased the Bengaluru franchaise of the T-20 Indian Premier League sporting extravaganza Royal Challengers by siphoning off part of “loan amount of Rs15.90 crore” from the bank account of KAL held with Deutsche Bank.”
The agency said it has attached assets valued at Rs4,234.84 crore in this case and “by concealing these properties and non-payment of loan amount and diverting the loan proceeds out of India, Mallya and UBHL benefited from the same and hence they are involved in the offence of money laundering.”